HDFC AMC has tumbled down today after the slightly positive opening in the morning; the stock fell almost 3% to hit an intraday low at Rs.1872.05 though at this juncture, we see more buyers than sellers on the counter.
Two facts impacted the price – the earnings and stepping down of CIO.
First the earnings for Q1FY23; they missed most estimates with revenue coming in 3% (YoY) higher at Rs.522 crore while net profit dropped 9% to Rs.314 crore.
EBITDA was up 2% at Rs.390 crore while margins slipped from 75.1% to 74.7%.
The second news – resignation of CIO, Prashant Jain, who has been with the AMC for the over 19 years and the only one to have managed a mutual fund scheme since inception for 28 years. News is that he plans to start his own firm.
Though it is not yet clear as to who will replace Jain, today the AMC Board, on the recommendation of Nomination & Remuneration Committee, approved the appointment of Chirag Setalvad as Head - Equities and Shobhit Mehrotra as Head-Fixed income, both reporting to Navneet Munot, Managing Director & Chief Executive Officer (CEO) of the asset management company (AMC).